Guidant and Boston Scientific Settle Patent Disputes

Guidant Corp. and Boston Scientific Corp. have agreed to a comprehensive settlement structure covering all current patent litigation pending. The two companies have filed a number of lawsuits in the United States and Europe in which each has accused the other of patent infringement. The patent disputes involve coronary stent systems and dilatation catheters.

As part of the settlement, the companies have agreed to license certain patents to each other. In addition, the companies have agreed to certain specified financial terms depending upon the ultimate resolution of motions currently pending in Guidant's lawsuit against Boston Scientific in Indiana related to Guidant's stent patents, and in an appeal by Boston Scientific of a lawsuit filed by Boston Scientific against Guidant in the Northern District of California related to Boston Scientific's dilatation catheter and stent delivery system patents. All other disputes between the companies will be immediately dismissed.

"We've eliminated the enormous expense and uncertainty that is associated with litigation, while once again taking a leadership position in creating a mutually agreeable situation," said Ronald W. Dollens, Guidant president and CEO.

"The resolution of these disputes recognizes the value of Boston Scientific's intellectual property, minimizes the ongoing expenditure of money and management time on these cases, and reduces our litigation risk," said Jim Tobin, president and CEO of Boston Scientific.

Edited by Ursula Jones